18 months left to avoid stamp duty hike

The Stamp Duty Land Tax (Temporary Relief) Act 2023 reduced the amount of SDLT paid by house buyers. This meant that SDLT would only apply to properties over £250,000.

In March 2025, the current rate will revert back to previous levels and so homes will be taxed from £125,000. According to figures produced by Coventry Building Society, this will take the tax bill on an average priced home in England from £2,822 to £5,322.

First time buyers currently only pay stamp duty if their home costs more than £425,000. This will drop to £300,000 in March 2025 and so is likely to have a significant impact on budgets.  

The removal of the temporary relief should act as a clarion call for both those thinking of moving, who already live in a property but seek to purchase another which is priced above £425,000.00 and professional buyers seeking additions to their portfolios.  For Landlords and professional purchasers, especially those purchasing through a company, the higher SDLT rate of 3% being applied after the first £40,000.00 will still remain in force.

Unlike the Stamp Duty holiday of 2020 and 2021 respectively, there has been little to no mention in the mainstream media of the soon coming change.  Due to the strains on the economy caused by higher interest rates it is likely the focus on that could lead to many willing buyers being unintentionally caught out due to the lack of a nudge from the Government in advance of the Autumn statement.

Jeremy Hunt has announced the Autumn Statement will take place on Wednesday 22^nd November 2023 so it remains to be seen whether the government has any further plans for stamp duty.

It has been a noticeable trend of recent successive Governments to rarely produce changes to SDLT that will benefit professional purchasers or those seeking to purchase a new property, the sole exception being the aforementioned stamp duty holiday.  

For all of our clients, we will be taking a keen interest in the developments to come and constantly sounding the warning of the impending changes to come.

If you are considering buying a property in the near future, it would therefore be best to ensure that you complete your purchase prior to March 2025. If you have any questions about the conveyancing process or wish to get a quote for the costs involved, why not call our team at Mosshaselhurst Solicitors on 01606 74301?